Devaluation of manat: expectations and realities

Against the background of the decrease in oil revenues in Azerbaijan, the increase in regulated and market prices increases expectations regarding the manat's devaluation.

On July 1, 2024, President Aliyev signed the Law[1] of the Republic of Azerbaijan on Amending the Law of the Republic of Azerbaijan on the State Budget of the Republic of Azerbaijan for 2024.

The revised state budget expenditures for 2023 amounted to 36 billion 458 million manats against a forecast of 36 billion 624.8 million manats, achieving an execution level of 99.5%. Of every 100 manats in the budget, 25.6 manats were allocated to economic activities, 16.1 manats to defense and national security, 11.7 manats to social protection and social security, 11.3 manats to education, 10.3 manats to general government services, 7.3 manats to the judiciary, law enforcement, and prosecution, 7.2 manats to services not classified under the main sections, 4.7 manats to healthcare, 2.6 manats to agriculture, 1.3 manats to culture, arts, information, physical education, youth policy, and other similar activities, 1 manat to environmental protection, and 0.9 manats to housing and communal services.

­The budget "discussions" in the Milli Majlis have ended. On June 14, 2024, at the next meeting of the extraordinary session of the Milli Majlis, the Draft Law[1] on the Execution of the State Budget of the Republic of Azerbaijan for 2023  was adopted.